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IOS in Public Organisations
Cutting Business & Operational Costs
Calculate my potential savings

 

The savings test

The savings test demonstrates the level of annual savings you should realise through brite-sparks membership—The example looks at a typical medium sized N.American factory with MRO and spare parts inventory totalling $1,000,000 and examines the range of savings that can be accrued. A one off saving of $60,000 dollars is realised through the sales of surplus inventory. Recurring savings of $113,800 dollars annually are forecast for this facility through its use of brite-sparks pooling and online manufacturing support services. Pooling can be either through closed – single company or invited partner arrangement or open with local and regional businesses virtually pooling their inventories. Take the test yourself enter in your ROM (rough order of magnitude) estimates of inventory and downtime levels, click anywhere on the page and see the savings you should realise.

MRO Inventory Pooling
What is your best monetary guess on the value of your current spare parts and consumable Inventory?  $  
What percentage of your inventory is unique to your organisation?    Typically 20%
What percentage of your inventory is surplus or redundant?    Typically 10%
What is your best guess on the annual cost of storing this inventory?    Typically 15% 
What typical ROM safety stock level is applied to your stock?    Typically 5%-10%
What percentage interest are you paying on borrowings?   Typically 10%

Value of surplus Inventory 

$  

Cost of storing surplus inventory 

$  
Downtime Reduction
What is your total annual production downtime in hours?    
What is your annual production downtime due to spare parts stockouts in hours?    
What percentage reduction in production downtime do you anticipate through on-line experts?    Typically 10%
What percentage reduction in production downtime do you anticipate through spare parts pooling?   Typically 10%
What percentage reduction in downtime do you anticipate through Manufacturing Intelligence ?   Typically 5%
What is your hourly rate for production downtime. $  

Annual Downtime Savings Hours

   

Annual Monetary Value of Downtime Savings

$  
Potential Benefits of Pooling Inventory and Purchasing
What is the annual spend on MRO Procurement? $  
Given the quality of your surplus inventory what percentage of the initial cost will you realise at sale ?   Typically 60%
What is your projected reduction in safety stock levels resulting from brite-sparks pooling?   Typically 50%
What is your projected reduction in overall stock levels resulting from brite-sparks Pooling    Typically 2%-30%
Aggregate Procurement cost reduction (10%) $  
Income from sale of surplus inventory $  
Total recurring Savings $  
Savings through safety stock reduction $  
Savings through reduction in overall stock levels $